Exploration

EUROPE
EMX has recently moved its focus in Europe from Romania to Sweden. The Company has established a Swedish subsidiary, acquired six exploration permits in the area south of Kiruna, Northern Sweden. This region belongs to the Fennoscandian Shield, and is characterized by a remarkably rich mineral endowment -- including major copper-gold, iron and gold deposits that support several world-class mining operations as well as a vibrant exploration industry. The exploration permits cover several known copper-gold occurrences and prospects in the Kiruna iron-copper-gold metallogenic province of northern Sweden, including the Ailatis and Saarijärvi prospects in the Puoltsa Exploration Permit, and the Pikkujärvi and Sakkek prospects in the Pikkujärvi Exploration Permits, The Swedish Geological Survey provides excellent support with extensive databases, drill core libraries and sample collections. EMX plans to use in-house expertise in porphyry and IOCG (iron ore-copper-gold) deposit types to advance these recent acquisitions in Sweden, and build an exploration property portfolio in the northern Fennoscandia region.

EMX's exploration permits cover approximately 213.5 square kilometers, and are held by Eurasian Minerals Sweden AB, a wholly owned Swedish-registered subsidiary. The geology of the permit area is dominated by a 1.9 billion year-old granite that is intruded into slightly older metavolcanic and metasedimentary supracrustal rocks. Copper sulphide and gold mineralization occurs in the contact zone between the granite and supracrustal rocks, and is associated with small bodies of intrusive rocks (rhyodacite, syenite and monzonite). The permits are located about 10 kilometers south of the town of Kiruna in northern Sweden. The Kiruna mining district includes the world-class Kiirunavaara iron ore deposit, the Viscaria copper-gold deposit, and the Pahtohavare copper-gold deposit.

Exploration History. Although the region is known to have a prolific mineral endowment, exploration is challenging due to the extensive cover of soils, glacial materials, and vegetation. Previous work during the past 10 to 15 years has tended to focus on individual occurrences and deposits that were known and described during the comprehensive state-funded exploration ventures in the second half of the 20th century. Previous work consisted of ground geophysics, geochemical sampling, geological mapping and drilling. EMX has acquired all the available data pertaining to the earlier work in the Permit areas.

The Pikkujärvi Prospect. First identified by Luossavaara-Kiirunavaara AB ("LKAB"), the state-owned company that has operated the Kiruna iron ore mines since 1890. LKAB drilled 36 core holes during 1982 to 1985, targeting copper-gold mineralization hosted by metavolcanic rocks at the contact with a quartz monzonite. Subsequently in 1986, LKAB reported a historical resource estimate (termed an "Ore Estimate") of 11.4 million tonnes averaging 0.43 percent copper at a 0.2 percent copper cut-off on the basis of 27 diamond drill holes totaling 5,414.1 meters (LKAB Report Nr 86-34 by Kirsten Holme, titled "Preliminary tonnage estimate of the Sierkavare (Pikkujärvi) copper mineralization"). This historical resource estimate is not NI 43-101 compliant, but the Company considers that it is relevant to the assessment of the permits. EMX has not performed sufficient work to classify the Pikkujärvi historical estimate as current mineral resources, and this estimate should not be relied upon until it can be confirmed by the Company.

The Sakkek Prospect. Originally investigated by Swedish Geological AB (a state-owned exploration service company) in the mid-1980's, and their program included six wide-spaced, shallow diamond drill holes. This work defined a linear zone of geochemical and geophysical anomalies that extends for about 4 kilometers. Drill holes SAK-1 and SAK-2 intercepted copper and gold mineralization in hydrothermally altered igneous rocks (syenite porphyry and trachyte). The best intercepts are reported from SAK-2, and include 1 meter (42--43 m) containing 0.55% copper and 0.31 g/t gold, and 1 meter (69--70 m) containing 2.1 percent copper and 0.09 g/t gold. The longest continuously sampled interval (61.6-70 m) in SAK-2 yielded 0.51% copper over 8.4 meters.

The Puoltsa Exploration Permit covers favourable geology and geochemistry proximal to, and extending from, the Pahtohavare and Rakkurijärvi Cu-Au deposits. A prominent NW-SE trending fault passes through the Permit area. The Ailatis and Saarijärvi Cu-Au prospects are located within the perimeter -- both have been drilled by SGAB and other exploration programs.

The Kalixfors Exploration Permit covers 115 sq km that has not received sufficient exploration attention due to the presence of a large Military Exclusion Zone, which has only recently been renounced and made available for exploration. The Kalixfors Exploration Permit includes favourable geology and geochemistry in an under-explored area. Earlier work in the 1970's identified Cu-Au mineralization at Kielinen (4 ddh program), a Cu-Mo-Au prospect at Håmojågge, and a very extensive field of mineralised boulders at Akkavaara.

Discussion. EMX's exploration permits cover an area with favorable geology, geochemical and geophysical anomalies, and drill defined copper-gold and copper mineralization. At Pikkujärvi, there is significant exploration potential away from the small 750 by 100 meter area with the historical resource estimate, as indicated by boulders with visible alteration and copper mineralization (0.36% to 1.16% Cu) that remain to be sourced. At Sakkek, anomalous copper and gold geochemistry from base-of-till sampling has not been tested. A prominent magnetic low to the west of the area, which may indicate intense alteration, occurs with anomalous copper and molybdenum stream sediment geochemistry, and remains untested. EMX is compiling and assessing a comprehensive database from the Puoltsa #10 and Kalixfors #1 Permit areas.

A follow-up EMX exploration program is planned for the 2010 field season.

The Company is actively evaluating other high priority opportunities in Sweden and elsewhere in Eastern Europe. The Company has sold the Serbian assets to Reservoir Capital Corporation. The sale to Reservoir for cash, work commitments, a net smelter return royalty, and future payments on the completion of a bankable feasibility study provides EMX's shareholders with continuing upside potential from the Serbian portfolio.